Specialists themselves may not be bearish, but often turn out later to be right because the public or the "crowd” was wrong. In declining markets, it’s the public who is doing the selling (and shorting) and the specialists who must buy to maintain an orderly market - even if they are not bullish at all.

Quote of the Day:
“The CROWD is always wrong at market turning points but often times right once a trend sets in. The reason many market fighters go broke is they believe the CROWD is always wrong. There is nothing further from the truth. Unless volatility is extremely low or very high one should think twice before betting against the CROWD.”
-Shawn Andrew, Ricercar Fund

Disclaimer

Disclaimer

The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.